// Matalan is looking to complete its sale process by the end of January 2023
// Founder John Hargreaves has teamed up with private equity firm Elliott Advisers for a 50-50 bid for the business
Matalan has said that it aims to complete its sale process by the end of January 2023 and said a “comprehensive update to the market” will be provided at that time, Drapers has reported.
The fashion retailer said that, as of December 15 2022, it had “received bids from a number of interested parties”.
A spokesperson for Matalan declined to provide the number of parties interested in acquiring the retailer although there are thought to be four bidders, including Matalan’s founder John Hargreaves, who teamed up with private equity firm Elliott Advisers for a 50-50 bid for Matalan at the start of the week.
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The other parties to have finalised bids for the retailer are understood to be Matalan’s senior lenders and Alteri and OpCapita, The Sunday Times reported.
The group of lenders that forced the sale process and is now bidding to take control of the chain includes Invesco, Tresidor Investment Management and Man GLG, part of FTSE 250 investment firm Man Group.
Hargreaves expects his bid to be successful due to his extensive knowledge of the company.
Matalan has faced debts of over £500 million and has come under increased pressure in recent months after leading credit insurers, including Allianz Trade, gradually removed cover for suppliers to the retailer.
The company has told bidders that it expects to make underlying earnings of £30 million this year, reaching £114 million by 2026. The successful bidder will be selected in the coming weeks.
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